A long-awaited Keep Britain Working report, led by former John Lewis boss Sir Charlie Mayfield has concluded that growth is being held back by ill-health, barriers to work and a lack of support for employers.
The report states: “The UK has been sliding into an economic inactivity crisis driven in large part by ill-health and by barriers to work faced by disabled people.
“This is holding back growth, damaging people’s life chances, and costing the UK billions in lost output and welfare payments.
“It need not be this way. This is a serious but fixable problem. However, it can’t be solved by Government or employers acting alone.” 
Sir Charlie said there was a lack of an effective or consistent support system for employers and their employees in managing health and tackling barriers faced by disabled people.
He added: “We are, therefore, proposing a fundamental shift from a model where health at work is largely left to the individual and the NHS, to one where it becomes a shared responsibility between employers, employees and health services. Employers will need to do more.”
There were 800,000 more people out of work now than in 2019 due to health conditions, costing employers £85bn a year, according to the report. One in five working age people were out of work and not seeking work.
He also warned that Labour’s Employment Rights Bill included disincentives to hiring people with existing illnesses.
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce (BCC) said: “The workplace health crisis is damaging for individuals, employers and the economy.
“So, this report is a hugely important contribution to tackling the issue and helping businesses access and retain a skilled workforce. The BCC’s evidence to the review was clear – employers want to be part of the solution but need support to play their part.
“The report supports several long-standing BCC recommendations including exploring a Statutory Sick Pay rebate for SMEs and pooled access for employee health support in the workplace. But at a time of surging business costs, support and incentives are crucial to ensuring businesses of all sizes can get involved.
“Alongside more access to workplace support, fixing the broken fit note system will be crucial to breaking down barriers and raising awareness of solutions.
“It’s now imperative that the Government works at pace to put the Mayfield Review recommendations into action. The UK’s economic future depends on the health and vitality of its workforce.
“But it is hard for many firms to see past a wall of rising costs, which presents a real barrier to better workplace health provision. That’s why firms need support and, with the Budget just weeks away, a commitment to keeping a lid on business taxes is vital.
“The Chancellor must also use her statement to help boost productivity and make sure every business has a strong pipeline of skilled labour. That should include, targeted youth employment support, reform of the apprenticeship levy and a long-term commitment to Local Skills Improvement Plans.
“In local communities across the country, Chambers are convening employers of all sizes and sectors to find practical solutions to skills and workforce challenges. Engaging and supporting SME employers will be crucial to the successful implementation of the Mayfield proposals and resolving the health crisis.”
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